[QODLink]
Central & South Asia
Kabul Bank fraud claims probed
Afghanistan's biggest privately owned bank is being investigated following allegations of mismanagement.
Last Modified: 30 Nov 2010 09:33 GMT
Customers waited outside the bank in September amid fears that it would collapse [EPA]

Afghanistan's Kabul Bank is being investigated following allegations that its former chairman misused funds, the Afghan finance minister has told Reuters news agency.

"Mismanagement is being investigated," Omar Zakhilwal said on Tuesday on the sidelines of an Afghanistan investment conference in Dubai.

Hundreds of Afghans queued outside the bank in September, trying to withdraw their savings after reports that millions of dollars had been lent and poured into high-risk real estate investments in Dubai.

Afghan authorities then seized operations at the bank, which is Afghanistan's biggest privately owned, following allegations that Sherkhan Farnood, the chairman, misappropriated funds.

Farnood has been ordered to hand over more than $150m in luxury villas and condominiums  that he allegedly bought with the bank's money for various Afghan elites, including Mahmood Karzai, the brother of the Afghan president.

Zakhilwal said the lender was now under the control of the central bank but was functioning normally.

"Kabul Bank has stabilised and is operating normally," he said.

Source:
Agencies
Topics in this article
People
Country
City
Organisation
Featured on Al Jazeera
Muslim volunteers face questioning and threat of arrest, while aid has been disrupted or blocked, charities say.
Six months on, outrage and sorrow over the mass schoolgirl abduction has disappeared - except for families in Nigeria.
ISIL combatants seeking an 'exit strategy' from Mideast conflict need positive reinforcement back home, analysts say.
European nation hit by a wave of Islamophobia as many young fighters join ISIL in Syria and Iraq.
Featured
Lacking cohesive local ground forces to attack in tandem, coalition air strikes will have limited effect, experts say.
Hindu right-wing groups run campaign against what they say is Muslim conspiracy to convert Hindu girls into Islam.
Six months on, outrage and sorrow over the mass schoolgirl abduction has disappeared - except for families in Nigeria.
Muslim caretakers maintain three synagogues in eastern Indian city, which was once home to a thriving Jewish community.
Amid fresh ISIL gains, officials in Anbar province have urged the Iraqi government to request foreign ground troops.